I believe that it means an engine rebuild. Is there the possibility it might not need that. Any positive info would be preferred but the negative would be helpful.

 

well, do you burn some think grey/white smoke when you startup? if so, i would think that comply with the oil being in the radiator. i'm not expert, but i think you came up with the correct synopsis.

 

Yer plumb fucked huhu huh huhuh
No seriousley dude your fucked.

 

I refused to let that be the problem so I pulled some of the coolant out of the radiator. The liquid is definitely a mixture of coolant and something else. Could be deposits or something. If it was oil would the two mix together evenly?

 

It could easily be sediment from corrosion that has built up in your coolant system.... Unless your car is overheating or blowing shitloads of blueish white smoke out of the exhaust I wouldnt worry to much... Try taking your radiator cap off when the car is cold. Make sure the radiator is full. If you have bubbles coming out of your rad cap and it gets worse when you get on the throttle you are screwed. Thats sort of a different senario all together though...
I would advise buying some prestone coolant system flush.... it did wonders on my TII's coolant sys. Though Im sure some may advise against it.

 

oil and coolant will not mix. If what you removed mixed evenly, then it was not oil.